REpower stake sale to Suzlon by Dec 15

Mumbai, Nov 4 (UNI) Suzlon Energy and Portugal's Martifer today said that they were negotiating a schedule for Suzlon's acquisition of Martifer's 22.48 per cent stake in Germany's REpower.

A Martifer spokesman yesterday said that the sale of its stake in REpower to the Indian wind turbine maker would go ahead by Dec 15, as planned, after Suzlon said last week the deal to increase its holding to 90 per cent would be delayed into 2009.

In a joint statement issued today, the companies said the initial agreement was for a payment in May 2009, but in August they had agreed to bring forward the purchase of Martifer's stake to mid-December.

''The payment of the purchase price in May 2009 is secured by an international bank guarantee. Both Suzlon and Martifer are currently in discussions to arrive at a mutually acceptable payment schedule,'' the companies said.

On Friday, Suzlon Chairman Tulsi Tanti had said the firm was negotiating a new payment schedule with Martifer, but yesterday the Portuguese firm had indicated it expected the deal to go ahead as planned.

''We are maintaining the agreement with Suzlon to sell our position in REpower by December 15,'' Filipe Cardoso, head of investor relations at Martifer.

''Whatever happens this sale will be carried out since we have a banking guarantee (for the sale) of Euro 270 million.'' Suzlon last week suspended an Rs 1,800 crore (USD 370 million) rights issue which was intended to help fund the deal.

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